Bangladesh Bank has allowed students and their sponsors to use international cards to pay tuition fees and other education-related expenses abroad, making payments to foreign universities and educational institutions easier.
The central bank issued a circular on Monday allowing Authorised Dealer (AD) banks to issue international debit, prepaid or credit cards specifically for overseas education payments.
The move comes as foreign universities, educational institutions and admission platforms increasingly require students to make payments through international card networks.
Under the new rules, cards may be issued either in the name of the student or the person financing the student’s education. They can be used to pay tuition fees and other approved education-related expenses to institutions abroad.
Bangladesh Bank clarified that payments made through these cards will be treated separately from existing foreign exchange entitlements. As a result, such spending will not be deducted from a student’s or sponsor’s annual travel quota or other foreign exchange entitlements.
AD banks will have to complete the required regulatory formalities before issuing the cards and ensure that their use is restricted to approved education-related payments. The cards will also be issued with a specified validity period corresponding to the permitted payments.
Banks have been instructed to maintain records of the transactions and report them to Bangladesh Bank under the prescribed purpose codes.
